- Bitcoin dropped from $112K to $107.6K after Trump’s tariff threats reignited trade fears and rattled crypto market sentiment.
- Santiment tracked a surge in tariff-related social chatter, signaling the sharpest fear spike since April 9 across crypto platforms.
- BTC’s technical breakout failed post-announcement, with rejection at $113.6K and strong bearish momentum testing $107.8K support.
Bitcoin fell over 3% from its all-time high of $112,000 after Donald Trump proposed sweeping import tariffs on the European Union and Apple iPhones made abroad. The announcement rattled crypto markets, slashing BTC to $107,600 in under 24 hours as traders rapidly adjusted to rising geopolitical risk.
Santiment Data Confirms Tariff-Driven Crowd Panic
Brought to the public by Santiment, social trend data from March 23 to May 23 revealed an immediate market response to Trump’s tariff threats. The platform tracked a sharp increase in terms like “tariff,” “inflation,” “ETF,” and “Real World Assets” just as Bitcoin began its sharp drop. According to Santiment’s report, “social dominance values rose sharply on May 23,” coinciding with Bitcoin’s sudden $4,400 decline from its recent peak.
Cointelegraph, reposting the Santiment report, noted that “Trump’s announcement of a 50% tariff threat against the EU triggered a major market and sentiment response.” It emphasized this reaction marked “the strongest crowd panic since the April 9 FUD spike.” Santiment also labeled the May 23 sentiment swing “the most extreme since the April 9 maximum fear spike,” further confirming how social metrics directly mirror Bitcoin volatility during politically charged events.
Trump’s Trade Announcement Halts Bitcoin Rally
In the announcement, Trump proposed a 50% tariff on all European Union imports and an additional 25% levy targeting Apple if the company continues overseas iPhone production. The move is aimed at reversing what Trump calls an unfair trade imbalance. Santiment reported that the threat brought tariff discourse “back to the highest levels since early April’s peak fear,” disrupting both equity and crypto sentiment.
According to an analysis by Bitcoinsensus, Bitcoin had just completed a strong multi-day ascent within a defined channel when the statement dropped. The tariff risk “quickly spoiled the crypto party,” ending the rally and forcing BTC out of its bullish structure. Santiment confirmed the announcement immediately triggered “real-time crowd engagement shifts,” with keyword tracking reflecting the abrupt change in market mood.
Bitcoin Technicals Confirm Breakdown Below $108K
The BTC/USD hourly chart, reviewed by Bitcoinsensus, showed Bitcoin steadily climbing from $101,300 on May 19 to a high near $113,600 by May 22. The price channel broke soon after the tariff headlines, as BTC failed to hold its gains. “The price began declining sharply after breaching the upper channel,” Bitcoinsensus observed, “marking a transition from accumulation to short-term distribution.”
Support at $107,800 is now under test as bearish candles form lower highs and expanding volume confirms downside pressure. The same chart noted rejection wicks near $113,600, now a likely ceiling. With momentum shifting, traders are preparing for the possible continuation of the retracement if tariff fears remain unresolved.
